Brazilian meatpackers have stopped supplying the Carrefour group in Brazil, its local unit said, after the retailer's global CEO vowed to keep South American meat off its shelves in France, sparking backlash from meat producers.
'Unfortunately, the decision to suspend meat supply impacts our customers, especially those who trust us to supply their homes with quality and responsible products,' Carrefour Brasil said in a statement.
Carrefour CEO Alexandre Bompard said last week that the trade deal being discussed between the European Union and the Mercosur regional trade bloc presented the "risk of meat production spilling over into the French market (and) failing to meet its requirements and standards."
'A Protectionist Stance'
His remarks in a social media post addressed to leaders of France's farm lobbies were blasted by Brazilian agribusiness industry groups, which issued a joint statement calling them 'a protectionist stance.'
On Friday (23 November), local media began reporting that Brazilian meatpackers such as JBS and Marfrig had stopped supplying meat to Carrefour Brasil, although none of the named firms or Brazilian meat industry groups confirmed the move.
Marfrig declined to comment, and JBS did not immediately comment on the matter.
Carrefour representatives had previously clarified to Reuters that the retailer does not currently source meat in France from Mercosur countries.
However, in Brazil, beef industry group Abiec has said Carrefour operates 1,200 stores that sell mostly domestic beef.
Abiec declined to comment on Monday when asked about the supply halt.
Seeking Solutions
In its statement, Carrefour Brasil said it is seeking solutions to reverse the suspension as soon as possible, adding there is no meat shortage in its stores at the moment.
The Brazilian unit was responsible for some 20% of the French group's total sales in the third quarter, according to company data.
Brazil's agriculture minister Carlos Favaro said he was happy with the local suppliers' decision, after calling last week's Carrefour pledge an "orchestrated action" by French companies to sabotage the trade pact between the EU and Mercosur, which officials aim to finalise this year.
Goldman Sachs analysts estimated that every day of meat sales lost, including beef, chicken and pork, could represent as much as an 1.8% decline to Carrefour Brasil's fourth-quarter net income estimates.
Carrefour Brasil did not say which type of meat specifically was being impacted by the suspension.
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